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Home My WebLink About2006-01-18 STAFF REPORTS RA2 �o?ALMgpQ x u � * k M c 1y h O.Ai EOM cq<iFOBN�P CITY COUNCIUREDEVELOPMENT AGENCY STAFF REPORT DATE: January 18, 2006 CONSENT CALENDAR SUBJECT: REPAYMENT AND RELENDING OF CRA LOANS INCLUDING LOAN OF $289,000 FOR MESQUITE AVENUE PROJECT 94-17 FROM: David H. Ready, City Manager BY: Department of Finance and Treasury SUMMARY This is a "housekeeping" item to transfer cash to the Merged Area #1 and #2 Capital Project Funds from the Merged Area #1 and #2 Debt Service Funds, via a repayment of loans to and reloaning of funds from the General Fund. i Loan Repay New Loan jMerged Area #1 Debt Service $1,389,000 Merged Area #1 Capital Project $1,389,000 Merged Area #2 Debt Service $400,000 Merged Area #2 Capital Projects $400,000 CITY COUNCIL RECOMMENDATION: 1) Approve the loan and repayment of the amount $1,789,000 to the City of Palm Springs Community Redevelopment Agency. i 2) Adopt Resolution No. of the City Council of the City of Palm Springs, California, amending the Budget for the 2005-06 Fiscal Year. i 3) Adopt Resolution No. of the City Council of the City of Palm Springs, California, amending the Budget for the 2005-06 Fiscal Year. (TEM NO. i City Council Staff Report January 18, 2006 -- Page 2 Repayment and Relending of CRA Loans COMMUNITY REDEVELOPMENT AGENCY: 1) Accept the loan of$1,789,000 and approve repayment of the City of Palm Springs. 2) Adopt Resolution No. of the Community Redevelopment Agency of the City of Palm Springs, California, amending the Budget for the 2005-06 Fiscal Year. 3) Adopt Resolution No. of the Community Redevelopment Agency of the City of Palm Springs, California, amending the Budget for the 2005-06 Fiscal Year. BACKGROUND: State rules governing Redevelopment accounting do not allow transfers between project areas or even between a single project area's debt service fund and capital projects fund. If a project area's capital projects fund has a negative cash balance and its debt service fund has positive cash balance, the simplest way to "transfer" cash between the two funds is to repay an existing loan and make a new loan. That is the situation in the proposed budget amendment resolutions. The purpose of all these loans is to cover projected negative cash balances in the Capital Projects Funds. The net indebtedness of the CRA project areas remain the same. The net effect on the General Fund is zero. Also, this year the Community Redevelopment Agency received tax increment revenue for prior years from Riverside County made available through the Teeter Fund reconciliation. These funds are available to be used for the Mesquite Avenue Improvement Project, which has direct proximity to Merged Project Area #1. It is recommended that the $289,000 in Teeter Funds received in Merged Area #1 be used for this project. The attached resolutions amending the budget accomplish the necessary tracking to comply with the accounting rules. �m c`Crai6A.Graves` John Raymo hii-ector of Finance & Treasurer ` I �Birector of Community & Economic velopm nt /s�roy Butt Tom Wilson /� sistant i anager Assistant City Manager Administrative Services Development Services David H. Ready City Manager/Exe—i,ve Director r3.� RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2005-06 FISCAL YEAR. WHEREAS Resolution 21283 approving the budget for the fiscal year 2005-06 was adopted on June 8, 2005; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 21283, adopting the budget for the 2005-06 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount No. 001 12416 $1,389,000 General Fund Redevelopment Agency Loans Receivable Purpose: New loan to Merged Area#1 Capital Projects to cover on-going costs. SECTION 2. SOURCE Merged Area#1 is concurrently paying back$1,389,000 in loans from the General Fund. Fund Activity Account Amount No. 811 29301 $1,389,000 Merged Area #1 Fund Balance Capital & Admin ADOPTED THIS day of , 2006, David H. Ready, City Manager ATTEST: James Thompson, City Clerk 0r,003 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2005-06 FISCAL YEAR, WHEREAS Resolution 21283 approving the budget forthe fiscal year 2005-06 was adopted on June 8, 2005; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 21283, adopting the budget for the 2005-06 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activit Account Amount No. 001 12416 $400,000 General Fund Redevelopment Agency Loans Receivable Purpose: New loan to Merged Area#2 Capital &Admin to cover on-going costs. SECTION 2. SOURCE Merged Area #2 is concurrently paying back $400,000 in loans from the General Fund. Fund Activity Account Amount No. 812 29301 $400,000 Merged Area #2 Fund Balance Capital &Admin ADOPTED THIS day of 2006. David H. Ready, City Manager ATTEST: i C James Thompson, City Clerk 00.- �� CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California i i i i i i RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2005-06 FISCAL YEAR. WHEREAS Resolution 1283 approving the budget for the fiscal year 2005-06 was adopted on June 8, 2005; and WHEREAS the Executive Director has recommended, and the Agency desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 1283, adopting the budget for the 2005-06 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount No. 001 12416 General Fund Redevelopment $1,389,000 Agency Loans Receivable Purpose: New loan (at 6%, effective 1/18/06) to Merged Area #1 to cover on-going administration costs. SECTION 2. SOURCE Merged Area #1 is concurrently paying back $1,389,000 in loans from the General Fund. Fund Activity Account Amount No. 811 29301 Merged Area #1 Fund Balance $1,389,000 Capital &Admin ADOPTED THIS day of 2006. David H. Ready, City Manager ATTEST: James Thompson, City Clerk -V ;" it CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California i i i I I i �I� RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2005-06 FISCAL YEAR. WHEREAS Resolution 1283 approving the budget for the fiscal year 2005-06 was adopted on June 8, 2005; and WHEREAS the Executive Director has recommended, and the Agency desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution,and that Resolution 1283, adopting the budget for the 2005-06 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount No. 001 12416 General Fund Redevelopment $400,000 Agency Loans Receivable Purpose: New loan (at 6%, effective 1/18/06) to Merged Area #2 to cover on-going administration costs. SECTION 2. SOURCE Merged Area #2 is concurrently paying back $400,000 in loans from the General Fund. Fund Activity Account Amount 29301 No. 812 Merged Area #2 Fund Balance $400,000 Capital &Admin I ADOPTED THIS day of , 2006. i David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California i i i i i I �� FA